jtees4 wrote:

- quote -

The so called Kiddie Tax doesn't rear its ugly head unless
your child was under age 14 (she passes this test) and the
amount of investment income is in excess of $1500 in a year.
$1500 of interest even when rates were 5% a few years ago,
would require a balance $30,000. So it's possible that the
income would not have been subject to your tax rates.
Assuming that the income would only be taxed at the child's
rates, the investment income (unearned income) would have
had to exceed $750 before the child paid any tax. (I'm
assuming the child had no taxable compensation.) It is
therefore possible, that there may not have been a
requirement to even file a tax return reflecting the
interest paid. It is all going to depend upon how much
investment income the child had each year.

--
Alan
http://taxtopics.net

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jtees4 <jtees4[at]hotmail.com> wrote:

- quote -

Daugher's SS# means it is daughter's money. She probably
does not need to file. You or your MIL do not report the
income with daughter's SS# on form 1099.

Missy

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Until the total income for your daughter reaches $750, she
does not have to file a tax return at all. It is not
taxable.

Find out from your mil or the bank what the total interest
is now and has been in the past. You can probably
relax......

Nan, EA in LA

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- quote -

They will come to your house and put you and your daughter
in chains for tax evasion. You will be interrogated at
Guantanamo Bay, Cuba.

- quote -

That's her tough luck, isn't it?

If your daughter's investment income is less than $750, she
does not owe any tax on it and does not have to file. If it
is more than that, she has to report it. If the IRS has her
SSN on file, it probably has your address. They will send
the delinquency notice to you. The address on the 1099INT
is the one the preparer of the 1099INT put on it.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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I just found out that my mother in law had opened a small
bank account listed with her name, as custodian for my
daughter. No problem with that. The SS# is my daughter's.
The 1099-INT gets mailed to my mother in law....she just
told me about it. I assume that I now have to list the 1099
on my taxes (my daughter is 10). Two possible problems:

1. What if she did not tell me about the 1099. I would not
even know about it cause it's mailed to her directly, what
would happen?

2. My MIL does not know when she opened this account, it
could be years...and therefore this interest may have never
been claimed (or she accidentally claimed it on her taxes).

Any thoughts or advice would be appreciated.
Thank you.

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